Summa Silver Corp. Announces Upsize of Brokered Private Placement Financing to $10,000,000 led by Investments from Eric Sprott and First Majestic Silver

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VANCOUVER, British Columbia, Jan. 21, 2022 (GLOBE NEWSWIRE) -- Summa Silver Corp. (“Summa” or the “Company”) (TSXV:SSVR) (OTCQB: SSVRF) (Frankfurt:48X) is pleased to announce that it is increasing the size of its previously announced brokered private placement offering of Units of the Company (the “Units”) at a price of $0.90 per Unit for gross proceeds of up to $10,000,000 (the “Offering”). The Offering is being conducted by Research Capital Corporation and Eventus Capital Corp., as co-lead agents and joint bookrunners (the “Agents”). Participation in the Offering is expected to include Mr. Eric Sprott and First Majestic Silver Corp.

Each Unit will be comprised of one common share of the Company (a “Common Share”) and one-half of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each whole Warrant shall be exercisable to acquire one Common Share (a “Warrant Share”) at a price of $1.20 per Warrant Share for a period of 36 months from the closing of the Offering.

The Company has granted to the Agents an option, exercisable up to 48 hours prior to the closing date of the Offering, to sell up to an additional 15% of the offered Units at a price of $0.90 per Unit.

Galen McNamara, CEO of the Company, stated: “The participation of First Majestic and Mr. Eric Sprott in the current financing represents a significant endorsement of Summa Silver’s ongoing work and future potential at our two high grade US silver projects. This year will be transformative for the Company as we aggressively advance both projects.”

The net proceeds from the Offering are expected to be used for exploration, corporate development, and general working capital purposes. Closing of the Offering is expected to occur on or about February 10, 2022 and is subject to certain customary conditions including, but not limited to, the receipt of all necessary regulatory approvals and acceptance of the TSX Venture Exchange.

Closing of the Offering is subject to regulatory approval and all securities to be issued pursuant to the Offering will be subject to a four-month hold period under applicable Canadian securities laws. The Company has agreed to pay to the Agents a cash commission equal to 6% of the gross proceeds of the Offering. In addition, the Company has agreed to issue to the Agents compensation warrants of the Company exercisable for a period of 36 months, to acquire in aggregate that number of common shares of the Company which is equal to 6% of the number of offered shares sold under the Offering at an exercise price of $0.90.